Monitoring of Budget Policy and Strengthening the Deficit Procedure (Regulation)
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Economic & Fiscal Policy

Monitoring of Budget Policy and Strengthening the Deficit Procedure (Regulation)

Dr. Matthias Kullas
Dr. Matthias Kullas

The Commission intends to intensify the surveillance of national EU budget policy and to develop the deficit procedure. Moreover, euro states are to be obliged to transpose European budget requirements stipulated under the Stability and Growth Pact into national law. Moreover, national budgets must be based on independent macroeconomic forecasts in future.

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The rule that euro states must use independent economic forecasts prevents euro states from circumventing the stability rules by means of creative accounting. The proposed obligation of euro states to transpose European budget rules into their national laws transcends – irrespective of their economic appropriateness – the competency of the EU to monitor budgetary discipline and therefore constitutes an infringement of competency.

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Monitoring of Budget Policy and Strengthening the Deficit Procedure COM(2011) 821 (publ. 06.20.2014) PDF 115 KB Download
Monitoring of Budget Policy and Strengthening the Deficit Procedure COM(2011) 821